Nigeria to Rely Less on Borrowing, Focus on Revenue-Finance Minister Edun
Nigeria’s Federal Government says it will rely less on borrowing and focus more on mobilizing domestic resources to strengthen the economy.
Minister of Finance, Wale Edun disclosed this during an interview with Bloomberg Television at the World Economic Forum in Davos, Switzerland, stressing that revenue generation is now the government’s top priority.
Edun explained that while Nigeria retains access to international bond markets if necessary, the administration’s fiscal policy is anchored on expanding tax revenue and reducing dependence on external debt. “The issue now is to focus on revenue, focus on domestic resource mobilization. We’re hoping to rely less on borrowing,” he said.
Since assuming office in 2023, President Bola Tinubu’s administration has rolled out sweeping reforms to stabilize public finances and drive growth. These include removing currency restrictions, ending the costly fuel subsidy, and restructuring the tax framework.
The government aims to raise tax revenue to 18% of GDP next year, up from about 14% currently, as part of efforts to achieve long-term fiscal sustainability.
Economic indicators suggest the reforms are beginning to yield results. The International Monetary Fund recently upgraded Nigeria’s growth forecast to 4.4% for 2026, from 4.2% in 2025, despite weaker oil prices. Analysts say improved revenue collection and reduced reliance on debt could further stabilise the economy and boost investor confidence.
Edun also noted that Nigeria remains open to international capital markets if required, but emphasised that domestic reforms are central to fiscal policy. He added that interest rate cuts may be considered if inflation continues to ease, a move that could lower debt-servicing costs and ease pressure on public finances.
Nigeria’s message at Davos 2026 is shaped by wider global realities affecting emerging markets. The country is debuting its first-ever national pavilion, Nigeria House Davos, at the 56th Annual Meeting of the World Economic Forum, signalling its intent to showcase reform-driven opportunities to global investors.
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